Record a supplier invoice (with VAT and withholding)

A Purchase Invoice records the bill a supplier sends you. When you submit it, OLY ERP records the cost, the VAT you can claim, any tax withheld, and the amount you owe the supplier.

Before you start

• A submitted Purchase Receipt (or Purchase Order) for the goods.
• The supplier's invoice in front of you, with its number, date and totals.
• The "VAT 15%" Purchase Taxes and Charges Template and any Tax Withholding Category. Your OLY ERP consultant sets these up during onboarding.

Steps

1. Open the submitted Purchase Receipt.
2. Click Create > Purchase Invoice. Supplier, items, quantities and rates are copied.
3. Enter the supplier's invoice number in Supplier Invoice No and its date in Supplier Invoice Date.
4. Set the Posting Date. Your accountant tells you whether to use the invoice date or the date you received it.
5. Compare each row with the supplier's invoice. If the price differs from the order, check with purchasing before changing it.
6. In Taxes and Charges, choose the template "VAT 15%".
7. If withholding applies, tick Apply Tax Withholding Amount and check the Tax Withholding Category. The amount is calculated at the current legal rate, set up by your consultant.
8. Check the totals against the paper invoice.
9. Click Save, then Submit.

VAT example

Example Foods PLC receives an invoice for 20 rolls of "Printed film, cheese" at 500 ETB per roll.

If withholding applies, it appears as a separate deduction line and reduces the amount you pay the supplier. Your accountant pays the withheld amount to the tax authority.

Returns to a supplier (debit note)

When you send goods back or the supplier gives a price reduction, make a Debit Note:

1. If goods go back, open the Purchase Receipt and click Create > Purchase Return. Set the returned quantity and submit. Stock goes down.
2. Open the original Purchase Invoice and click Create > Return / Debit Note. Is Return is ticked and Return Against shows the original invoice.
3. Set the returned quantities (shown as negative), check the VAT, then save and submit. What you owe the supplier goes down.

Good to know

• The system warns you if the same Supplier Invoice No was already entered for this supplier. This stops double billing.
• The Outstanding Amount shows what you still owe. It drops when you record payments.
• Do not tick Update Stock if a purchase receipt was already made. Stock would be added twice.

Related

• Receive goods (purchase receipt)
• Pay a supplier
• VAT: what you charged and what you paid